Porsche Says US Law Doesn't Apply To Investor Claims

German sports-car maker Porsche Automobil Holding SE (PAH3.XE) has asked a New York court to dismiss claims filed by a total of 39 hedge funds alleging market manipulation and securities fraud, because the U.S. Securities Exchange Act doesn't apply to the plaintiffs' claims, Porsche said in memorandum released Wednesday.

"Plaintiffs chose to speculate on German share prices and all the misstatements and market manipulation they allege occurred outside the United States, but they attempt to invoke U.S. law by asserting claims under Section 10(b) of the Securities Exchange Act of 1934...Their attempt fails because Section 10(b) does not apply to their patently foreign claims," the Stuttgart, Germany-based carmaker said in a memorandum submitted to the court.

Porsche said "Germany is the appropriate forum" for any court action since the case, which is related to Porsche's stake-building at Volkswagen AG (VOW.XE), involves German law, securities, markets, and conduct.

"Adjudicating plaintiffs' claims in the United States would run the risk of inconsistent judgments and encourage forum shopping by potential plaintiffs," Porsche said.

The company further said that the plaintiffs' claims don't sufficiently allege that Porsche made actionable misstatements, and their case fails to allege a market manipulation claim.

-By Harriet Torry, Dow Jones Newswires: [phone]: [e-mail]